Jyoti Mukul & Anupama Airy

New Delhi, June, 3: Petronet LNG Ltd (PLL) has reworked its plans to award the prestigious contract for developing the Rs 1,800-crore, 2.5 million tonne LNG terminal project at Kochi. As against its earlier plans of awarding the Kochi LNG project on built-own-operate-and-transfer basis (BOOT), PLL has now decided to invite global EPC bids for this project.

Senior government officials disclosed that the proposal to go in through the EPC route will be soon approved by the PLL’s board as an informal clearance has already been given by the company’s directors. Following the board’s approval, global bids will be invited from domestic and international companies.

Bid documents are being prepared in consultation with Crisil Advisory Services (CAS) and Engineers India Ltd (EIL). CAS is also the commercial consultant for the Kochi LNG terminal project.

Speaking to The Financial Express, a senior PLL official said the entire bidding procedure right from pre-qualification to the final selection of the EPC contractor for the Kochi terminal would be completed within this financial year.

“We have to select an EPC contractor by January 2002 since construction will take almost three years and Kochi terminal is scheduled to receive its first LNG ship in January 2005,” the PLL official said. He, however, added that since international companies take time in assessing a project, the bidding process may get delayed by a month or two.

It is significant to note here that PLL had earlier floated global pre-qualification tenders for setting up the Kochi LNG project on a BOOT basis and had even shortlisted six bidders for development of the re-gassification terminal. Leading companies like Reliance, L&T, Mitsui of Japan had evinced interest in developing the project on BOOT basis.

The responsibilities listed for the BOOT contractor was to build, man and operate the project till the re-gassified LNG reaches the transportation pipeline. The contractor undertaking the work was also to raise the necessary finances required to fund the project. After the expiry of 25 years BOOT period, the project was to be reverted back to Petronet LNG, the promoters of the venture.

However, officials said that most of these companies were not too keen to work on the terms and conditions laid down by PLL. “Following a series of meetings with the shortlisted bidders, PLL was unable to finalise the terms and conditions for this contract and it finally decided to invite EPC bids for this project,” officials said. PLL had in December awarded EPC contract for its 5 mtpa Dahej LNG terminal project to a consortium led by Iishikawajima-Harima Heavy Industries Company of Japan.